Mendoza Tender

9 August 2012

Andes Energia plc

("Andes" or the "Company")

Mendoza Tender

The Board of Andes (AIM: AEN; BCBA: AEN), the Latin American E&P group, is pleased to announce that Andes, in a joint venture with YPF S.A. ("YPF"), has been ranked first in the tender process for exploration permits over three blocks in the Province of Mendoza:

1) "General Alvear": YPF 90% working interest and Andes 10% working interest.

2) "Sierra del Nevado": YPF 50% working interest, Pluspetrol 40% working interest and Andes 10% working interest.

3) "Cerro Manzano": YPF 70% working interest, Rovella Carranza 20% working interest and Andes 10% working interest.

The joint venture's total exploration commitment on these blocks is 6,392 working units, representing a total investment of approximately US$20 to 30 million over 5 years.

Other companies competing in the tender process include Total, Apache, Pan American Energy (BP/Bridas/CNOOC) and Wintershall, amongst others.

Nicolas Mallo Huergo, Chairman of Andes, commented: "We are very happy with the current status of the tender. We are confident that the blocks will be formally awarded in the near future. This demonstrates our and YPF´s commitment to explore and develop the potential of Argentina´s resources. We are also pleased with the prospect of becoming a partner of Pluspetrol, one of the leading Latin-American operators. The blocks have conventional and unconventional potential and will strengthen our position as a leading player in Argentina."

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Note to Editors:

Andes is a Latin American oil and gas group, with interests in Argentina and Paraguay. The Company's focus is on the oil and gas sector in South America, which it believes offers premium assets at undervalued prices.